How it works
The cash flow is the list of money in and out by year. Write that list first.
- Keep one table, one rate, and one leftover list.
- Avoid three slides that repeat the same adjective.
- If you show a sample, label it as a sample.
- If you want them to try the workflow, ask after the story, not before.
Formula in words. Retell test: can they say fit, cash, flip risk, and leftovers in four short lines?
| Input | Meaning |
|---|---|
| Audience | Owner, CFO, or operator |
| One table | The cash |
| One test | The flip |
| Leftovers | The unknowns |
Worked example
Here is a teaching sample. It is not customer data and not a result from a live client.
| Metric | Lease A | Lease B |
|---|---|---|
| Start rent | $39,800 | $37,014 |
| Year-1 extras | $9,300 | $9,951 |
| Year-1 credit | $6,000 | $3,300 |
| Sample NPV | $363,504 | $350,000 |
| Year | Rent | Extras | Credit | Cash out | Value today |
|---|---|---|---|---|---|
| Year 1 | $39,800 | $9,300 | $6,000 | $43,100 | $39,907 |
| Year 2 | $40,914 | $9,579 | $0 | $50,493 | $43,290 |
| Year 3 | $42,060 | $9,866 | $0 | $51,926 | $41,221 |
| Year 4 | $43,238 | $10,162 | $0 | $53,400 | $39,251 |
| Year 5 | $44,448 | $10,467 | $0 | $54,915 | $37,374 |
| Year 6 | $45,781 | $10,781 | $0 | $56,562 | $35,644 |
| Year 7 | $47,154 | $11,104 | $0 | $58,258 | $33,993 |
| Year 8 | $48,569 | $11,437 | $0 | $60,006 | $32,419 |
| Year 9 | $50,026 | $11,780 | $0 | $61,806 | $30,918 |
| Year 10 | $51,527 | $12,133 | $0 | $63,660 | $29,487 |
| Sample NPV | — | — | — | — | $363,504 |
How to read the sample
Sample NPV for the spoken sample is about $363,504. A second path lands near $350,000. That gap is a talking point, not a promise.
Speak year one as cash, not as a slogan. If one path wins only because a credit sat in the wrong year, start over.
Year notes for the spoken sample
- Year 1 of the spoken sample has rent of $39,800.
- Shared building cost is $9,300.
- A credit of $6,000 lowers the cash you pay that year.
- Cash out this year is about $43,100. Speak year one as cash, not as a slogan.
- Later cash gets a shrink for time. At 8 percent, year 1 is worth about $39,907 today.
- Next, year 2 rent is $40,914.
- CAM, which is a shared building cost, is $9,579.
- There is no credit in this year.
- You pay about $50,493 this year after extras and credits. Call out extras when they stay in year two.
- Time shrinks later cash. At 8 percent, year 2 is worth about $43,290 today.
- Then year 3 rent is $42,060.
- Extras for the building come to $9,866.
- Credits skip this year.
- The net cash this year is about $51,926. Name the step when it appears in year three.
- Waiting has a price. At 8 percent, year 3 is worth about $41,221 today.
- After that, year 4 rent is $43,238.
- The shared building cost this time is $10,162.
- No extra credit shows up this year.
- Cash out this year is about $53,400. Keep the rate in the same breath in year four.
- Later cash gets a shrink for time. At 8 percent, year 4 is worth about $39,251 today.
- In year 5 of the spoken sample, rent is $44,448.
- Shared building cost is $10,467.
- There is no credit in this year.
- You pay about $54,915 this year after extras and credits. Close the leftover list on year five.
- Time shrinks later cash. At 8 percent, year 5 is worth about $37,374 today.
- Year 6 of the spoken sample has rent of $45,781.
- CAM, which is a shared building cost, is $10,781.
- Credits skip this year.
- The net cash this year is about $56,562. Keep this later year in the sum for the sample.
- Waiting has a price. At 8 percent, year 6 is worth about $35,644 today.
- Next, year 7 rent is $47,154.
- Extras for the building come to $11,104.
- No extra credit shows up this year.
- Cash out this year is about $58,258. The row still belongs in the sum for the long path.
- Later cash gets a shrink for time. At 8 percent, year 7 is worth about $33,993 today.
- Then year 8 rent is $48,569.
- The shared building cost this time is $11,437.
- There is no credit in this year.
- You pay about $60,006 this year after extras and credits. Keep this later year in the sum for the long path.
- Time shrinks later cash. At 8 percent, year 8 is worth about $32,419 today.
- After that, year 9 rent is $50,026.
- Shared building cost is $11,780.
- Credits skip this year.
- The net cash this year is about $61,806. The row still belongs in the sum for the long path.
- Waiting has a price. At 8 percent, year 9 is worth about $30,918 today.
- In year 10 of the spoken sample, rent is $51,527.
- CAM, which is a shared building cost, is $12,133.
- No extra credit shows up this year.
- Cash out this year is about $63,660. Keep this later year in the sum for the long path.
- Later cash gets a shrink for time. At 8 percent, year 10 is worth about $29,487 today.
Add those year values. The sample NPV for the spoken sample is about $363,504. This is a teaching sample, not a client result.
Trusted sources
These are public references. They are not endorsements and not client results.
How to use this with OccupancyNPV
This page answers the concept. OccupancyNPV applies it inside a DealWorkspace: enter lease scenarios, review cash-flow and occupancy cost, then compare NPV and discount-rate sensitivity. OccupancyNPV NPV is not the same as a face-rent comparison. OccupancyNPV is not a CRM or lease-administration suite, and this page is not legal or investment advice.
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